Practice Area
Panel
- Contributing Author
Qualified Year
- 2002
Membership
- Chancery Bar Association
- Insolvency Lawyers Association
Qualifications
- Bar Vocational Course (2001)
- CPE (2000)
- BA (Hons) (1999)
Education
- City University (2000)
- Oxford University (1999)
3 Contributions by Marcus Haywood
PRACTICE NOTES
Administrative receiverships: creditor engagement, decision procedures, voting and committees under IA 1986 and IR 2016 (England and Wales)
The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 lay down the framework for decision-making across all insolvency procedures. The detailed rules governing such decisions appear in IR 2016, SI 2016/1024, Pt 15. Since the Enterprise Act 2002 reforms, the ambit of administrative receivership has been sharply reduced. A receiver of that type can no longer be appointed under a qualifying floating charge, as set out in Schedule B1 to the Insolvency Act 1986 (IA 1986), created on or after 15 September 2003, save in a narrow range of cases of minimal general practical significance. In practice, a debenture holder will almost invariably opt to appoint an administrator rather than seeking the appointment of an administrative receiver.
Relationship between the administrative receiver and creditors
IA 1986, s 47(3) places a duty on the following persons to prepare and deliver a statement of affairs to an administrative receiver:
persons who are, or have previously been, officers of the company
persons who participated in the company’s formation at any time within one year before the appointment date of the administrative receiver
persons employed by the company, or who were employed within that year, and during that same twelve-month period accordingly...
Restructuring & Insolvency
PRACTICE NOTES
Individual Voluntary Arrangements: Creditors’ Decision Procedures, Meetings, Voting Rights, Claim Valuation, Majorities, Appeals, Proxies and SIP 6 (England and Wales)
General
Creditors decide whether, and to what extent, an individual voluntary arrangement (IVA) proposal should be approved. In-person meetings are no longer the default way to reach decisions; the nominee may instead choose a qualifying decision procedure to obtain creditors’ views on the proposal. These procedures are set out in the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, Pt 15. The relevant procedure or any meeting is overseen by the convener or chair, almost always the nominee; if the nominee cannot attend, a replacement will act on their behalf.
Creditors’ consideration of the proposal
The debtor’s proposal is the foundation of any IVA. IR 2016, SI 2016/1024, r 8.3 specifies the required contents of an IVA proposal. Where no interim order is sought, the nominee must inform creditors of their opinion on the viability of the debtor’s proposal within 14 days of the proposal document being finalised. If the debtor seeks an interim order, the nominee’s report on viability must accompany the debtor’s interim order application. If the court is satisfied, on receiving the...
Restructuring & Insolvency
PRACTICE NOTES
Liquidation committees and creditors’ decision procedures: constitution, powers, fiduciary duties, meetings and deemed consent under IR 2016 Pt 15, IA 1986 and SIP 6 (England and Wales)
The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 set out a refreshed framework for taking decisions across all insolvency processes. The granular rules on decision-making are contained in IR 2016, SI 2016/1024, Pt 15. This Practice Note addresses the practical steps for forming a liquidation committee and explains the general creditors’ decision-making in liquidation. In reality, a liquidation committee carries considerable weight where cases are sizeable and complex.
The liquidation committee
Liquidators must obtain decisions by deemed consent or through a qualifying decision procedure. Physical meetings are permissible only when the relevant minimum number of creditors so request under section 246ZE of the Insolvency Act 1986 (IA 1986), though creditors may call for one before the notice of deemed consent or qualifying decision procedure is sent. In a creditors’ voluntary liquidation, creditors will be asked to determine if a liquidation committee should be created and to put forward nominees for committee membership at the same time as the directors seek their nomination of a liquidator, whether via deemed consent or at a virtual meeting. Where the official receiver (OR) is appointed as liquidator, the OR will generally not seek the appointment of a liquidation committee at all...
Restructuring & Insolvency
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